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Rite Aid in Talks With Creditors to Secure Liquidity
March 11, 2025
Rite Aid is in negotiations with its asset-backed loan providers to secure additional liquidity. The company is working to remove restrictions that prevent it from accessing resources within the facility. The additional liquidity will be used to replenish inventory and implement Rite Aid’s turnaround efforts. A spokesperson for the company did not provide further comments on the situation. The need to boost liquidity follows a series of financial setbacks for Rite Aid. Fitch had previously downgraded the company to D from CCC in October 2024 after they filed for Chapter 11. At the time of filing, Rite Aid had $4bn in outstanding debt, including $2.2bn in borrowings under its asset-backed loan, a $400mn FILO term loan, and $1.2bn in secured notes. Rite Aid also faces legal challenges, including opioid-related litigation and a dispute with its pharmaceutical supplier McKesson.
Its bonds are trading at deeply distressed levels of just 3 cents on the dollar.
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